Turquoise Hill Resources : Quarterly Financial Report for the Three Months Ended March 31, 2021

TURQUOISE HILL RESOURCES LTD.

First Quarter Report

March 31, 2021

Financial Statements and MD&A

Turquoise Hill Resources Ltd.

Condensed Interim Consolidated Financial Statements (Unaudited)

March 31, 2021

TURQUOISE HILL RESOURCES LTD.
Consolidated Statements of Income
(Stated in thousands of U.S. dollars)
(Unaudited)
		Three Months Ended March 31,
	Note		2021		2020
Revenue	4	$	526,546	$	130,659
Cost of sales	5		(155,644)		(145,924)
Gross margin			370,902		(15,265)
Operating expenses	6		(56,488)		(44,911)
Corporate administration expenses			(13,043)		(4,717)
Other income (expense)	20		(13,177)		3,218
Income (loss) before finance items and taxes			288,194		(61,675)
Finance items
Finance income	7		1,290		11,412
Finance costs	7		(1,635)		(1,809)
			(345)		9,603
Income (loss) from operations before taxes		$	287,849	$	(52,072)
Income and other taxes			44,300		71,028
Income for the period		$	332,149	$	18,956
Attributable to owners of Turquoise Hill Resources Ltd.			236,715		45,181
Attributable to owner of non-controlling interest			95,434		(26,225)
Income for the period		$	332,149	$	18,956
Basic and diluted earnings per share attributable
to Turquoise Hill Resources Ltd.		$	1.18	$	0.22
Basic and diluted weighted average number of shares outstanding (000's)	17		201,231		201,231
The accompanying notes are an integral part of these consolidated financial statements.

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TURQUOISE HILL RESOURCES LTD.
Consolidated Statements of Comprehensive Income
(Stated in thousands of U.S. dollars)
(Unaudited)
	Three Months Ended March 31,
		2021		2020
Income for the period	$	332,149	$	18,956
Other comprehensive income (loss):
Items that will not be reclassified to income:
Changes in the fair value of marketable securities at FVOCI		2,256		(1,375)
Other comprehensive income (loss) for the period (a)	$	2,256	$	(1,375)
Total comprehensive income for the period	$	334,405	$	17,581
Attributable to owners of Turquoise Hill		238,971		43,806
Attributable to owner of non-controlling interest		95,434		(26,225)
Total comprehensive income for the period	$	334,405	$	17,581

1. No tax charges and credits arose on items recognized as other comprehensive income or loss in 2021 (2020: nil). The accompanying notes are an integral part of these consolidated financial statements.

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TURQUOISE HILL RESOURCES LTD.
Consolidated Statements of Cash Flows
(Stated in thousands of U.S. dollars)
(Unaudited)
		Three Months Ended March 31,
	Note		2021		2020
Cash generated from operating activities before interest and tax	16	$	248,236	$	1,495
Interest received			1,175		11,831
Interest paid			(26,511)		(26,822)
Income and other taxes paid	19		(356,123)		(10,951)
Net cash used in operating activities		$	(133,223)	$	(24,447)
Cash flows from investing activities
Receivable from related party: amounts withdrawn	18		-		307,000
Expenditures on property, plant and equipment			(250,287)		(301,096)
Purchase of commodity put options			(29,907)		-
Other investing cash flows			-		63
Cash generated from (used in) investing activities		$	(280,194)	$	5,967
Cash flows from financing activities
Proceeds from bank overdraft facility			8,500		-
Payment of lease liability			(129)		(1,907)
Cash generated from (used in) financing activities		$	8,371	$	(1,907)
Effects of exchange rates on cash and cash equivalents			(42)		16
Net decrease in cash and cash equivalents		$	(405,088)	$	(20,371)
Cash and cash equivalents - beginning of period		$	1,123,621	$	1,651,985
Cash and cash equivalents - end of period			718,533		1,631,614
Cash and cash equivalents as presented on the balance sheets		$	718,533	$	1,631,614
The accompanying notes are an integral part of these consolidated financial statements.

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